The last Australian aid agency operating in Iraq says it is pulling out.

World Vision Australia chief Tim Costello says the situation in Iraq is too dangerous for its staff to remain. He says the work the organization has been doing in Iraq will be handed over to local officials and any unspent funds will be returned to donors.

Mr. Costello says the agency made the decision to leave Iraq before the apparent murder of international aid worker Margaret Hassan.

World Vision Australia's Iraqi head of operations, Mohammed Hushiar, was killed in late September in the northern city of Mosul.

Some information for this report provided by AFP.